High-end home sales lag in Worcester County

Sunday

Mar 24, 2013 at 6:00 AM

By Brian Lee TELEGRAM & GAZETTE STAFF

Richard P. and Dorothy J. Dixon live in an impressive five-bedroom home on a windy country road in Northboro. But with the last of five kids set to graduate from college next year, it's time to downsize.

During an economically challenging, belt-tightening time for many, selling a home at a price north of $1 million has been a challenge.

The couple had 12 to 15 potential buyers come through the house when it was on the market in November, but no takers. They are set to put it back on the market in April.

The couple, who own a company that makes commercial buildings, wants to build a three-bedroom, one-level house on land they purchased in Boylston.

Mrs. Dixon said they are fortunate they don't have to sell.

Originally advertised as "paradise found" for a little more than $1 million through broker Michael L. Durkin in September 2011, the impressive house sits on more than 1.8 acres near Tougas Family Farm.

After no takers were found in November, the house was temporarily withdrawn from the market, said Mr. Durkin, who works for RE/MAX Prestige in Northboro.

The house has elaborate landscaping, and Mrs. Dixon said she is eager to do more planting to make it stand out even more for a buyer.

Their addition of an in-ground pool and pool house, which has a kitchen, half-bath and an 18-by-24-foot heated area, is a focal point, Mrs. Dixon said.

The initial feedback was that the house was priced fairly, but being on a windy country road didn't bode well for parents who want to send their kids outside to play in a neighborhood, Mrs. Dixon said.

Mr. Durkin said the setting is perfect for a family seeking privacy with kids 10 and older, and for someone seeking a deal.

The house can't be replicated for $1.3 million, he said, adding that it offers a quick commute to Worcester.

With spring here, real-estate brokers who handle luxury homes in Worcester County say they hope increased sales at the lower end of the housing market will benefit them.

Activity involving luxury homes has been slow the past three years, with 48 single-family homes selling countywide for $1 million or more from Jan. 1, 2010, to Dec. 31, 2012, according to The Warren Group, a private company that tracks real estate.

"Here in Central Mass. it's still a rock fight to sell a resale house over a million bucks," said Mr. Durkin.

Also, high-end inventory in the region is considered low, with 45 single-family homes of $1 million or more presently for sale on the Multiple Listing Service.

Few owners are willing to offer their higher-end homes for sale in what's still perceived to be a buyer's market, despite an improving stock market, area agents say.

There was a statewide increase of 25 percent in condominium sales and 18 percent of single-family home sales in 2012 compared to 2011, and the turnaround of a seven-year housing slump that ended last year was due mostly to first-time home buyers who bought smaller homes, says Timothy M. Warren Jr., chief executive officer of The Warren Group.

Mr. Warren said the first-time buyer theory could not be confirmed from public records and was "sort of a guess" based on anecdotes.

He said he has also been hearing stories from people wanting to get out of large monstrosities they have owned for many years, preferring what he called a back-to-the-city movement.

Area brokers handling luxury suburban homes say any spike in the market bodes well for them.

Susan Tsantes, senior vice president at Coldwell Banker Residential Brokerage in Bolton, said lower- end sales are "priming the pump" for the next tier.

Eileen Griffin Wright, vice president at Coldwell Banker Residential Brokerage in Bolton, is listing a 6,500-square-foot French country manor on Fox Run Road in Bolton for $1.3 million. The investor-owned property was originally put on the market for $2.1 million in 2008, she said.

The builder, Ed Plante, said he spent two years designing the house, and another year-plus building it by himself. He called it "therapy" to recover from building traditional subdivisions in the area. He said he wanted the neighborhood to be "riched up" and "bolder."

The mansion has a large kitchen, skylights and three fireplaces, including a stone one that runs from the floor to the ceiling in the main living room. There's a master bathroom with a Jacuzzi, large shower and dressing room with two closets. The house has an in-law apartment above the three-car garage.

Not surprisingly, though, there was minimal interest in something so grand during trying economic times.

But Ms. Griffin Wright said interest is starting to pick up, mostly from people looking to relocate to the area. One prospective buyer flew in from Texas, and Ms. Griffin Wright expressed confidence the woman would return with her husband for a second look.

Ms. Tsantes, from Coldwell, said there is an undetermined window of opportunity for deals, since the market is in transition.

Westboro Realtor Andrew J. Abu said he doesn't expect a significant jump in area prices in the coming years.

Mr. Abu said the curious thing about buyers is that as soon as they see a glimmer of hope with the market, they automatically assume prices will go up. But as sellers' fears of putting their homes on the market are allayed, it will bring more inventory and flatten prices, he said.

Mr. Abu said he is looking forward to a spike in inventory in the county.

"Part of the issue with these million-plus buyers is they may rule out many towns," with a particular interest in the best schools, the broker said.

Mr. Abu said the Tomaiolo family's Greenleaf Farms Development company has been building homes that are designed for buyers in the $800,000 to $1 million range in a subdivision in northern Shrewsbury.

But if a buyer doesn't want to live in that area, he said, that eliminates six to eight luxury options. Also, he said, a buyer may want something that's less than 10 years old, eliminating other options.

"What might appear to be a good number of options can go down to a small number of options quickly," Mr. Abu said.

Mr. Durkin said few luxury homes have been built in the county recently. The Tomaiolo family is the only local builder doing well in that market, Mr. Durkin said.

The broker predicted there would be a shortage of new construction in the coming years.

Contact Brian Lee at blee@telegram.com

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